Defense Contracting Fraud

Originally, the Federal False Claims Act was created to combat against waste, fraud and corruption in the military during the Civil War. As the demand for supplies grew exponentially, defense providers were able to charge hugely inflated prices for inferior goods, but since the government needed a huge amount of supplies very quickly, they were forced to accept these prices. Eventually, the Federal government realized the true value of these goods and took action: they passed the False Claims Act, which offered a monetary reward for anyone exposing individuals defrauding the government. Today, illegal fraud still unfortunately exists, but the government has set an effective precedent by stringently enforcing the False Claims Act and rewarding whistleblowers handsomely.

1.     Virtually all of the government's military and defense supplies are from private companies. The U.S. government uses the majority of its tax money to create, develop, implement and purchase military and defensive systems. This includes supplies, food and weapons for troops, aircraft and ships, and a large administrative body to conduct the Department of Defense's affairs. Because the Federal government purchases supplies in the billions, if not trillions of dollars, this is a prime area for individuals to commit fraud.

2.     There are many types of defense fraud. Contractors have developed countless schemes to cheat the government and the taxpayers: among these are use of inferior goods for manufacturing of firearms, vehicles and aircraft, charging the government twice or even triple the real rate for their services through improper bookkeeping, or altering or ignoring a government specification on plans without the government's approval. All of these fraudulent activities not only allow private companies to cheat the government, it puts our nation at risk.

3.     More than any other type of fraud, this can be a national security risk. Defrauding government offices such as Medicare and Medicaid are terrible and seriously hurt our nation's economy and social systems, but defense fraud threatens our nation at its core. We depend on our defensive systems to hold up if we are ever attacked, but this might not be the case. In April 2006, the New York Times reported that there was ongoing speculation about the efficacy of a $ 26 Billion nuclear missile deterrent system, and that even the Government Accountability Office was in on the fraud. Clearly, there are major areas of concern where defrauding the government and improperly developing supplies could result in the death of hundreds, thousands, or even millions of Americans.

4.     It is critical that you handle a defense contractor fraud case correctly. Allowing a contractor to get away with millions in taxpayer money and leave a shoddy product behind is irresponsible. Therefore, it is necessary to seek assistance from an attorney so that the matter can be fairly tried. If you believe you are witness to defense contractor fraud, please come forward. America needs you.